1.1 Introduction
A computerized information system is a system that uses computer technology to collect, process, store, and disseminate information for decision-making, coordination, control, analysis, and visualization in an organization (Laudon & Laudon, 2016). In today’s digital age, small business enterprises (SBEs) are increasingly recognizing the importance of leveraging such systems to enhance efficiency, manage resources effectively, and compete in dynamic markets.
Small business enterprises form the backbone of many developing economies. However, they are often constrained by poor record keeping, manual processes, and limited access to timely and accurate information (Agbo & Otene, 2019). The growing affordability and accessibility of computer technology present an opportunity for SBEs to adopt computerized solutions tailored to their specific business processes. Such systems can support various business functions, including inventory management, sales tracking, payroll, customer relationship management, and accounting (O'Brien & Marakas, 2013).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitation of the study and Definition of technical terms.
1.2 Background of Study
The evolution of information systems can be traced back to the mid-20th century when businesses began using early computers for data processing and payroll operations. These early systems were primarily large, expensive mainframes accessible only to large corporations and government institutions (Laudon & Laudon, 2016). Over time, advancements in computing technology led to the development of more affordable and compact systems, making them accessible to medium and eventually small businesses. Small business enterprises (SBEs) play a significant role in the economic development of both developed and developing countries. They contribute to job creation, income generation, poverty reduction, and innovation. However, despite their relevance, many SBEs face persistent challenges in managing their operations effectively, primarily due to the continued reliance on manual record-keeping systems (Ogunlade & Adebayo, 2020).
In developing countries like Nigeria, the adoption of computerized systems among small businesses has been slower due to challenges such as inadequate infrastructure, lack of technical know-how, and high costs of implementation. However, recent developments in mobile technology, cloud computing, and affordable software solutions are gradually bridging this gap and making it more feasible for SBEs to adopt computerized systems (Ayoade, 2020). Manual processes are often time-consuming, prone to human error, and lack the reliability needed for informed decision-making. The introduction of a computerized information system addresses these issues by streamlining business activities, enhancing data accuracy, and improving access to critical information (Laudon & Laudon, 2016).
A computerized information system is an integrated set of components for collecting, storing, and processing data, and for delivering information, knowledge, and digital products. It enables businesses to monitor their performance in real-time, maintain customer records, track inventory, and generate financial reports, among other functions (O’Brien & Marakas, 2013). The application of such systems is particularly important for SBEs that require cost-effective and scalable solutions to compete with larger enterprises in increasingly digital markets.
In today’s business environment, where customer expectations are high and competition is intense, small businesses must embrace digital transformation to remain relevant. Adopting a computerized information system not only reduces operational costs but also improves service delivery, enhances decision-making, and supports long-term sustainability (Akinyemi, 2018).
The challenges encountered that led to the execution of the research work is that, in the existing system, there is lack of a structured system for tracking essential business activities like sales, inventory, customer records, and financial transactions. It is against the background that the developments of this software will benefit employees of small business enterprises by simplifying their daily tasks, reducing redundancy, and providing a structured way to handle information. The motivation behind this project is the need to design and implement a computerized information system tailored to the operational needs of small business enterprises.
1.3 Statement of Problems
Investigation reveals the problems affecting the existing small business enterprise information system which are as follows:
- The manual system is time-consuming, as tasks such as bookkeeping, inventory tracking, and sales recording are done by hand, slowing down business processes and reducing productivity.
- The traditional system lacks real-time data processing capabilities, which limits the ability of business owners to make timely decisions based on up-to-date information.
- There is high cost of acquiring hardware, software, and training which is prohibitive for many small enterprises with limited financial resources.
- Some supported systems require specialized knowledge which is complex, making it challenging for business owners and employees with limited technical skills to fully utilize the system.
1.4 Aim and Objectives of Study
The aim of this study is to design and implement a computerized information system. The specific objectives of the study are:
- To analyze the existing manual system used by small business enterprises and identify its limitations.
- To design a user-friendly computerized information system tailored to the needs of small businesses.
- To implement the system in a way that supports essential business functions such as inventory management, sales tracking, and customer record management.
- To ensure data security, integrity, and backup within the system for protecting business information.
1.5 Significance of Study
This study will provide small business owners with a practical and affordable solution to improve the management of their business operations. Also, the computerized information system will enhance the accuracy, reliability, and speed of business transactions, enabling business owners to make informed decisions based on real-time data.
Furthermore, the study will benefit employees of small business enterprises by simplifying their daily tasks, reducing redundancy, and providing a structured way to handle information. With easy-to-use interfaces and automated reporting features, the system will make information management more accessible even for users with limited technical skills.
Lastly, researchers and developers will find this study significant as it will contribute to the growing body of knowledge in business technology and serve as a model for developing similar systems for other sectors.
1.6 Scope of Study
This study focuses on the design and implementation of a computerized information system for a small business enterprise operating in Enugu Urban, Enugu State, specifically using Bright Future Supermarket as a case study. The scope covers the development of a system that automates key business functions such as inventory management, sales tracking, customer record management, and report generation.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 Definition of Terms
Computerized Information System:
This refers to an integrated set of components, including hardware, software, procedures, and personnel, designed to collect, process, store, and distribute information electronically to support business operations (Laudon & Laudon, 2020). In this study, it means a digital platform developed to automate the daily activities of a small business.
Small Business Enterprise:
A business entity characterized by limited scale in terms of employees, revenue, and market reach, usually managed by an individual or a small group (Aremu & Adeyemi, 2011). Small businesses play a vital role in economic development by providing employment and services at the grassroots level.
Inventory Management:
It is the process of overseeing and controlling the ordering, storage, and use of components or finished products (Chopra & Meindl, 2019). Effective inventory management in this study means ensuring that stock levels are accurately recorded and monitored through the computerized system.
Sales Tracking:
This involves the systematic recording and analysis of sales transactions to monitor business performance (Kumar & Reinartz, 2016). The computerized system will simplify this process by automatically recording sales data.
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